Tax credit

A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit they have accrued from the total they owe the state. It may also be a credit granted in recognition of taxes already paid or a form of state "discount" applied in certain cases.

A refundable tax credit is where, if the credit exceeds the taxes due, the government will pay back to the individual the difference. A non-refundable tax credit is where, if the credit exceeds the taxes due, the individual pays nothing but does not receive the difference.

Quotes

ordered by date

• [The US should] dramatically expand its current earned-income tax credit, a form of negative income tax that pays low-earners instead of asking them to pay income tax...
  • JPMorganChase CEO Jamie Dimon "Jamie Dimon just doubled down in supporting a little-known tax that pays poor people", Chris Weller, Business Insider (4 Apr 2017)

• There's a special place in hell for people who prey on children. I've yet to see a valid explanation and I have no reason to doubt the victims' accounts.
  • Ivanka Trump ""Ivanka Trump says child tax credit ‘not a pet project’" (November 15, 2017)

• Note to Republicans: If we raised the federal minimum wage to $15 per hour, expanded the Earned Income Tax Credit, and created jobs in the areas left behind, then Americans wouldn’t need nutritional assistance to feed their families.
  • Ro Khanna "'Twitter post" (27 December 2018)

• We will deliver the largest working- and middle-class tax cut in a generation. Up to $500 a month to help America's families make ends meet
  • Kamala Harris talking about LIFT (Livable Incomes for Families Today) the Middle Class Act, a $3 trillion plan that would provide a tax credit of up to $6,000 per year "Kamala Harris calls her LIFT plan ‘the most significant middle-class tax cut in generations.’ Is it?" (January, 2019)

• [allow the child-care expenses incurred on Saturdays] to allow (the parent) to hold full-time employment from Monday to Friday
  • a judge in a 2007 tax case "What every parent needs to know about deducting child-care expenses come tax time" (September 13, 2019)

• You get a tax break for a racehorse, why in God's name couldn't we provide an $8,000 tax credit for everybody who has childcare costs? It would put 720 million women back in the workforce. It would increase the GDP, to sound like a wonk here, by about eight-tenths of one percent. It would grow the economy.
  • Joe Biden "Biden vows tax credit will put '720 million women' back in workforce" (September 17, 2019)

• [Failing to act could spark an economic catastrophe] Nearly 50 million seniors could stop receiving Social Security checks for a time. Troops could go unpaid. Millions of families who rely on the monthly child tax credit could see delays.
• In a matter of days, millions of Americans could be strapped for cash
  • Janet Yellen in remarks to the Senate Banking Committee according to "Here’s what the debt limit standoff means for you" (September 28, 2021)

• Important changes to the Child Tax Credit are helping many families get advance payments of the credit:
  • IRS "Advance Child Tax Credit Payments in 2021" (Updated 07-Oct-2021)

See also

• Taxation